Implementation of the Employment Rights Act 2025 and New Consultations
New Legislation Enacted
Authors: Stephanie Compson, Partner & Head of Knowledge Management and Innovation and Emily Bodger, Knowledge Lawyer
The Employment Rights Act 2025 (‘ERA 2025‘) passed last year, but its reforms are being implemented in phases. Key provisions came into force on:
- 18 February, 2026: Introducing reforms mostly related to trade union industrial action
- 6 April, 2026: These changes were more wide ranging, including the doubling of the collective redundancy protective award (which will impact employers’ workforce restructuring proposals), new record keeping obligations relating to annual leave requirements and the introduction of day one rights to paternity leave, parental leave and statutory sick pay
- 7 April, 2026: Establishing a new statutory enforcement body to enforce certain labour market laws
The next phases of changes are scheduled in August and October this year, with more coming in 2027. The UK Government’s timeline for implementation of these ERA 2025 reforms was updated in February with some significant changes to potential timings, including most notably the ‘fire and rehire/replace’ measures have been delayed from October 2026 to January 2027.
Alongside implementation, several consultations are underway seeking views on how to shape secondary legislation. These cover topics including protection from detriments for taking industrial action, the new threshold for triggering collective redundancy obligations, modernising the agency work regulatory framework, strengthening the law on tipping, flexible working, fire and rehire changes to expenses, benefits and shift patterns, and trade union e-balloting unfair practices.
Changes to English Language Requirements and Criminality Provisions
New Legislation Enacted
Author: Ben Maitland (Consultant)
Effective 8 January, 2026, the UK Government increased English language requirements for several major work visa routes, including the Skilled Worker route, for new applications. The required proficiency level under the Common European Framework of Reference for Languages (‘CEFR‘) has increased from B1 (intermediate) to B2 (upper intermediate) across speaking, listening, reading, and writing. A corresponding increase will apply to settlement applications from 26 March, 2027.
Further changes were set out in a Statement of Changes to the Immigration Rules published on 5 March, 2026. From 26 March, 2026, the scope of criminality provisions is expanded so that the mandatory refusal ground based on a 12-month custodial sentence will also capture suspended sentences of the same duration.
In addition, from 8 April, 2026, amendments to the Skilled Worker salary rules clarify that sponsored workers must be consistently paid the required salary level, allowing enforcement action where underpayment is identified without requiring an annualised salary comparison. Together, these reforms increase compliance scrutiny for sponsors and raise the bar for both new applicants and settlement eligibility under the UK’s work migration framework.
Data (Use and Access) Act 2025: Key Provisions Now in Force
New Legislation Enacted
Author: Hannah Drury, Associate
The Data (Use and Access) Act 2025 amends the UK data protection framework, with several employer relevant provisions already in force as of 5 February, 2026, and further changes taking effect on 19 June, 2026. The Act introduces a new lawful basis for processing personal data where it is necessary for a “recognised legitimate interest,” codifies the “stoptheclock” mechanism for responding to data subject access requests, relaxes certain restrictions on automated decision-making, and adjusts the test for international data transfers, allowing transfers where protection in the destination country is not materially lower than under UK law.
Looking ahead, from 19 June, 2026, individuals will gain a new right to complain directly to their employer where they believe their personal data has been handled in breach of UK data protection laws. These changes increase flexibility for employers in data processing while also heightening expectations around internal complaint handling and governance.
New Bereaved Partner’s Paternity Leave Right in Force
New Legislation Enacted
Author: Mark Callaghan, Senior Associate
The Bereaved Partner’s Paternity Leave Regulations 2026 (SI 2026/237) have been published and took effect from 6 April, 2026. They introduce a new statutory right to bereaved partner’s paternity leave (‘BPPL‘) from day one of employment. Under the new right, eligible employees will be entitled to a single period of up to 52 weeks’ leave where the child’s ‘primary carer’ (typically the mother or primary adoptive parent) dies within 52 weeks of the child’s birth or adoption placement.
There is no statutory right to pay during BPPL. However, eligible employees may still be able to take their two weeks of statutory paternity pay during this period if it has not already been taken. The regulations set out the notice requirements and provide enhanced protections for those who take it, including protection from detriment and the right to be offered suitable alternative employment in redundancy situations for up to 18 months from the birth or adoption.
Initial Guidance on Pay Gap and Menopause Action Plans
New Regulation or Official Guidance
Author: Dónall Breen, Senior Associate
The UK Government has issued its first set of guidance regarding pay gap and menopause action plans, which will be required for large employers (with 250 or more employees) from 2027 as a result of the Employment Rights Act 2025 reforms. The guidance clarifies the scope of this new statutory requirement, specifically, that action plans must address (i) the employer’s gender pay gap, and (ii) support for employees experiencing menopause.
The guidance suggests that the first compulsory action plan must be published by 4 April, 2028 (for the 2027/2028 reporting year), based on the 2026/2027 gender pay gap data, however confirmation and full details are awaited in regulations. The guidance states that employers may voluntarily publish actions plans from April 2026 prior to them becoming mandatory. Additional guidance for employers on creating an action plan is due to be published in April 2026.
